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The pregnant of demonetisation is to replace the existing currency with a new ane and to BAN the older up-to-dateness in any case of financial circulation.
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When did demonetization start in the United States?
Thus demonetization in the USA was quite catastrophic. When the nations of the European Union officially began to use the euro as their daily standard currency in 2002, it was cited as an instance of demonetization for trade purposes.
How did demonetisation in Pakistan affect the economy?
As polymer-based notes were already in use for four years, the transition was smooth and didn’t have any impact on the economy. Pakistan’s central bank, in 2016 decided to phase out banknotes of older design to curb black money and gave the general public six years to exchange their currency.
What are some of the effects of demonetisation?
Another area that is a cause of worry is the likely drop in the rural demand as the cash usage will become restricted.
How is Demonetization A solution to black money?
The report concluded that demonetization may not be a solution as black money was largely held in the form of benami properties, bullion, and jewellery. Such a measure would only increase the cost as more currency notes which have to be printed.
Last Update: Oct 2021
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